Renault signs five-year Lithium supply Agreement with Vulcan Energy Resources

According to foreign media reports, German-Australian start-up Vulcan Energy Resources said on Aug. 2 that it had signed a lithium supply agreement with Renault Group. This is Renault's latest move to lock in the supply of battery materials, and the company expects a surge in demand for battery materials in the future.

The two sides announced that starting from 2026, Vulcan will supply Renault with 6000 to 17000 tons of lithium per year. The five-year agreement can be extended if the two sides agree.

Renault said it hopes 90% of Renault models will be electric by 2030. The company said that Vulcan's geothermal lithium does not produce carbon emissions in the production process, which is the most attractive thing for the company.

Vulcan plans to invest 1.7 billion euros ($2 billion) in geothermal power stations and facilities to extract lithium, with the goal of starting production of the white metal by 2024. Typically, geothermal projects work by extracting superhot lithium-rich salt water from groundwater and using heat to generate electricity, followed by lithium extraction from salt water, which is then redischarged into the ground. Compared with the two most common white metal extraction methods, open-pit mines and salt water evaporation ponds, geothermal projects are more sustainable.

Last month Vulcan signed a long-term agreement with South Korean company LG Chemical to sell its lithium hydroxide made in Germany to LG Chemical's battery division. Vulcan also signed a memorandum of understanding on lithium supply with Stellantis, the world's fourth-largest carmaker.